The purpose of this activity is to get you to think about whether, as an analyst, you think income should be reduced by goodwill.

Explain why you agree, or disagree, with the FASB's decision that goodwill should not be amortized, but instead should only be reduced when there is impairment. Consider whether, as an analyst, you want income to be reduced by a goodwill amortization expense, and whether you feel the goodwill asset should be periodically reduced for amortization.

Should Goodwill be treated as if it lasts forever?